12th Aug 2019 10:14
(Alliance News) - Shares plunged in Benchmark Holdings PLC as it noted continued challenging market conditions in the third quarter of its financial year, as well as delays in product trials.
Shares in the aquaculture genetics firm were 30% lower at 36.40 pence on Monday in London.
For the three months to the end of June, Benchmark said it has continued to face tough conditions in the global shrimp and Mediterranean seabass markets, which has hurt sales volumes in its Advanced Nutrition segment.
In addition, Benchmark will see a reduced contribution from trials of pre-licence pipeline products within the Animal Health unit, due to delays in starting trials in several territories.
As a result, Benchmark's expectations of the revenue and profit mix for the full year ending September 31 have changed, although the company did not specify by how much.
Benchmark is progressing its programme of operational and structural efficiencies, including commercial licensing deals for its non-core animal vaccines. Should the deals be completed within the current year, they will offset the weaker performances from the other segments "substantially", it said. However there is a risk this won't happen, it added.
"Notwithstanding these short-term challenges, the board believes that the company is well positioned in its markets and the opportunities for its existing products and those coming from its pipeline are strong," Benchmark said.
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